MGA implements first phase of sandbox framework

The Malta authority launched the phase for the acceptance of VFA and the use of DLT on January 1.

Malta.- The Malta Gaming Authority (MGA) has officially launched on January 1 the first phase of its Sandbox Framework for the acceptance of Virtual Financial Assets (VFA) and the use of Distributed Ledger Technology (DLT).

During the first of two phases the authority will accept applications for the use of DLT Assets, directly or through third part service providers, by their respective licensees. The first phase is expected to last at least 10 months, subject to an extension if the MGA decides to do so.

The MGA also updated its Licensee Relationship Management System (LRMS) to allow new operators to apply for approvals for the use of DLT Assets as part of a New Licence Application and existing licensees to apply for approvals for the use of DLT Assets through the application type – New or Change in Payment Methods / Financial Management Information.

Moreover, the authority also updated its LRMS to allow existing licensees participating in the sandbox environment to report VFA player liabilities through the monthly Player Funds Report. Licensees will also need to report any failed return transactions, with respect to any invalid deposits.